Brodie Co Uses a Standard Job Cost System and a Denominator

Multiple Choice

Brodie Co. uses a standard job cost system and a denominator volume of 25,000 direct labour hours for allocating overhead. The actual output was 12,000 units, which cost $185,700 for direct labour (23,000 hours) , $27,525 for variable overhead, and $136,400 for fixed overhead. The standard variable overhead per unit is $2 (2 hours @ $1 per hour) , and the standard fixed overhead per unit is $10 (2 hours @ $5 per hour) . All variances are immaterial and are closed to Cost of Goods Sold at the end of the period.
The entry to close the variable overhead variances includes a:

A) Credit to the variable overhead spending variance for $4,525
B) Credit to work in process for $24,000
C) Credit to the variable overhead efficiency variance for $1,000
D) Debit to Cost of Goods Sold for $5,525